The importance of estate planning is a vital issue for all citizens of the United States. All of us accumulate wealth and assets throughout our lives. Therefore, we should have a thoughtful and detailed plan to ensure the smooth transfer of these assets to our successors. This is where legacy estate planning services come into play. This post will be useful for those who want to know more about legacy estate planning services and their key advantages.
What is legacy estate planning?
Legacy estate planning is an all-inclusive approach to estate planning that goes beyond the traditional attitude of distributing assets after someone passes away. The planning consists of creating a strategic plan for managing and transferring any sort of legacy to those people named in the will. The key goal of legacy estate planning is to establish a framework that fully corresponds to the person’s goals and values and allows passing on wealth flawlessly. Moreover, thoughtful planning will smooth out any possible conflicts among beneficiaries.
For this purpose, experts and lawyers recommend the use of services of professional companies with impeccable reputations. For example, owing to years of recognized expertise and experienced staff, Certuity provides legacy estate planning services within a high-touch service environment on a turnkey basis.
Types of legacy estate planning:
- Will-based estate planning;
- Trust-based estate planning;
- Irrevocable life insurance trusts;
- Charitable remainder trusts;
- Family limited partnerships;
- Grantor-retained annuity trusts;
- Qualified personal residence trusts;
- Dynasty trusts;
- Special needs trusts;
- Pet trusts.
Why do individuals need legacy estate planning?
Let us describe the main cases when individuals may need legacy estate planning. First of all, it is needed for succession planning for family businesses. For example, succession planning is a vital issue of legacy estate planning for business owners. It helps to create a clear roadmap for the transfer of ownership and management of a family business to the next generation. Such services structure ownership transitions and minimize any potential tax problems.
Secondly, we should mention correct integration of financial expertise. Legacy estate planning always requires a comprehensive approach. Estate planning lawyers and financial advisors must team up to address complex legal, tax, and financial aspects.
Thirdly, legacy estate planning must be used for a long-term purpose and cover multiple generations. This perspective ensures that wealth is both preserved and expanded for the advantage of all future family members. Estate specialists work closely with clients to develop strategies that endorse financial security and provide opportunities for subsequent generations.
Fourthly, legacy estate planning often includes philanthropic goals in the overall plan. Many people wish to leave a positive impact on society and support causes close to their preferences. Estate planners assist in structuring charitable giving and help their clients to establish specific foundations, donor-advised funds, or other charitable institutions that fully correspond to their values.
Finally, legacy estate planning is vital for asset protection. Asset protection has always been one of the most important issues of accurate legacy estate planning. Professionals in this field use various strategies to protect assets from such potential risks as lawsuits, creditors, divorce, and any misunderstandings between successors. For example, you can use OCIO investment advisory services provided by Certuity Company for planning and protecting your legacy estate.
Key advantages of legacy estate planning
As you have already understood, correct legacy estate planning has many benefits for both testators and successors. Please, find the most common ones in the table below.
| Advantage type | Characteristics |
|---|---|
| Conflict resolution | A well-structured legacy estate plan helps to avoid any conflicts among beneficiaries. Clear instructions decrease the probability of any disputes and promote family harmony. |
| Wealth protection | Legacy estate planning helps individuals to protect their wealth for future generations. Strategic planning and the right asset protection strategies ensure that all the wealth is passed on to beneficiaries in any case. |
| Tax reduction | It is one of the key benefits of legacy estate planning. Estate specialists usually use such strategies as trusts, gifting, and charitable giving to lessen the estate’s taxable value. As a result, successors will get more wealth. |
| Probate avoidance | Legacy estate planning helps persons structure their assets in a way that avoids probate. For this purpose, estate professionals use such legal instruments as living trusts, which help to pass on assets to their beneficiaries more privately. |
| Protection of family values | Legacy estate planning helps to save family values. When testators outline the values they wish to pass on to future generations, estate professionals help them to ensure that the wealth is used in ways that correspond to the family’s key ideas. |
| Healthcare and decision-making | Legacy estate planning helps establish healthcare directives. In this case, testators will be sure that their medical and financial wishes are respected in case of incapacity. A healthcare directive will guarantee that trusted individuals are empowered to make vital decisions on behalf of the testator. |
Final words
Now you understand why legacy estate planning services play such an important role in preserving your legacy for your successors. It should be noted that these services provide comprehensive solutions tailored to each client’s unique circumstances. You must always be sure that your wealth, values, and legacies will be correctly passed on to your family and relatives. For this purpose, it is necessary to use the services of a competent company with many years of expertise and reputation.